How Does Behavioral Marketing Work?
As with other types of marketing, there’s a method and science to behavioral marketing. Here’s a look at how a typical campaign will play out from start to finish.
Data Collection
The data involved in behavioral marketing typically comes from multiple sources.
Yes, these sources include the company’s website and e-commerce platforms. However, they also include mobile apps, CRM systems, and many other automated systems that may be in place.
Types of data gathered could consist of (but aren’t necessarily limited to):
- Which demographics visitors belong to.
- How long they stay on-site and what pages they visit.
- Any log-in information they may have created.
- What they’ve purchased and when.
- Typical depth of content engagement.
Segmentation
Once the data collection phase is completed, it’s time to combine similar visitors into segments and sub-segments.
Again, many criteria might be used to differentiate one group of people from another, but they will almost always be based on behavior.
Many segment systems will contain groups separated by gender, age, or whether someone has purchased in the past.
But some groups may be for customers who love buying sweaters vs. sundresses or baked goods vs. cleaning supplies.
Data Application
Once each lead is successfully organized into one or more groups, it’s time to start crafting campaigns targeted to appeal to each unique segment.
The more specific the segment, the more detailed and relevant any resulting advertising is likely to be.
Not only does stellar accuracy help you make sales, but it helps personalize the experience for the user, making them feel valued and catered to.
Follow-up and assessment of each campaign result is an integral part of this stage, as well. After all, even a great strategy can be made better next time.
The greater the depth of your analysis, the more accurate you’ll be able to make your future campaigns.
Types of Behavioral Marketing
These days, behavioral marketing is everywhere you go online, from your favorite social media platforms to news outlets and Google search results.
In fact, you probably see it in action so often, you hardly notice it anymore. Here are some examples of common types to know.
Email Marketing
Suppose you’ve received an email from a business about an abandoned shopping cart you left at their web store or a couple of items you may have been checking out.
In that case, you’re already very familiar with this type of behavioral marketing. Specific customer behaviors trigger relevant emails in a similar manner.
For example, let’s say a customer leaves a full shopping cart behind. They may receive an initial email about an hour afterward, encouraging them to complete their purchase.
If that fails to get results, they might receive others a day or two later, perhaps with a discount code included to help sweeten the pot.
Social Media Ads
Any time you browse social media platforms like Facebook, Twitter, or Instagram these days, the ads that fly through your newsfeed are likely eerily relevant.
If they’re not directly relevant to you, they likely are to someone else in your family or household.
Social media targeting is modern behavioral marketing at its best.
It can be used to drum up local business, encourage return visits to favorite websites, or interest potential leads in services similar to others they’ve already shown interest in.
Google Ads
Google is one of the undisputed kings of data collection, and their search and display ads are proof positive these days.
For example, let’s say a customer in the market for a new laptop decides to start the shopping process with a good, old-fashioned Google search.
They’ll get a nice page full of relevant search results with a bank of shopping ads for laptops right at the top.
If the person decides to interact with those ads without also making a purchase, they’ll likely see more of the same hanging out on other sites they visit for a while.
The idea is to remind them that they were checking out laptops a little bit ago and potentially prompt another shopping session, preferably one that ends in a purchase.
Wrap Up: Data-Driven Marketing and the Future of Your Company
Although the world of digital marketing is ever-changing, one thing’s for sure: data is king, and it’s here to stay.
Data-driven marketing practices (like behavioral marketing) are also the key to making lasting connections with your customers, boosting sales margins, and turning your brand into a true force to be reckoned with.
Now it’s time to learn the building blocks of a solid data-driven marketing campaign.
